Red McCombs Invests in High-Tech Piggy Bank, SmartyPig

SAN ANTONIO--(BUSINESS WIRE)--Red McCombs, the co-founder of Clear Channel Communications, has agreed to purchase a substantial equity stake in the online social banking company SmartyPig. While terms of the deal were not disclosed, the announcement comes at a time when the U.S. personal savings rate has reached its highest point in nearly 15 years.

“and I believe that within five years SmartyPig will be recognized as a global leader in the consumer banking space.”

Like a modern, high-tech piggy bank, SmartyPig’s patent-pending application allows users to save money, track their progress to meet specific goals and invite friends and family members to be a part of the process. Goals range from saving for a child’s college education, to planning for a new baby or wedding, to saving for a consumer purchase like a TV or family vacation, to simply teaching children about fiscal responsibility at an early age.

“We are very pleased with our investment in SmartyPig,” said McCombs. “We believe this is a tremendous opportunity to improve people’s lives and provide financial freedom by helping people break out of the vicious cycle of credit card debt. SmartyPig is a revolutionary company that empowers consumers with true cash buying power. Instead of the ‘buy first and pay later’ mentality, SmartyPig helps people buy with cash and avoid being buried in future debt.”

SmartyPig offers one of the most competitive interest rates in the country and has partnered with major retailers like Home Depot, Best Buy and Babies R Us to offer cash incentives and special pricing on customers’ savings goals. Customer deposits are held in West Bank and are FDIC insured. SmartyPig’s security infrastructure has successfully completed regulatory and compliance audits conducted by various independent auditing firms.

The innovative savings platform developed by SmartyPig has proven extremely popular with consumers throughout the country, such that U.S. customer deposits now total more than $100 million. Further, thanks in large part to customers who have been quick to share their positive banking experiences with friends, family members and social networking contacts, SmartyPig expects its core deposit base will surpass $500 million by the year’s end. Perhaps even more notable, the viral growth of the SmartyPig community has taken place with minimal advertising expenditures.

“SmartyPig is a safe, proven platform that provides unique opportunities for consumers to maximize their savings. It has already proven successful both inside and outside the U.S.,” McCombs noted, “and I believe that within five years SmartyPig will be recognized as a global leader in the consumer banking space.”

The SmartyPig transaction engine is compatible with any bank in any country, language and currency. Further, in developing an application that meets the unique needs of Generation Y and other prominent consumer groups, SmartyPig has firmly entrenched itself as the global leader in social money.

Jon Gaskell, President and Co-Founder of SmartyPig, is excited about McCombs’ involvement. “Red’s enthusiasm is contagious. His personal experience and business relationships will propel SmartyPig to the next level and help guide the company as we grow and expand.”

For additional information on SmartyPig, contact Jon Gaskell or visit www.smartypig.com.

ABOUT SMARTYPIG – SmartyPig is a Des Moines, Iowa, based company that allows customers to open goal-based savings accounts and to invite their friends and family to contribute to their goals. The system is based on proprietary, patent-pending technology and the latest in security standards. SmartyPig’s U.S. banking partner is West Bank, a subsidiary of West Bancorporation, Inc. (NASDAQ: WTBA). All funds are held in West Bank and are FDIC insured up to the legal limit of $250,000. The company’s Australian banking partner is Australian New Zealand Banking Group Limited (ANZ).

ABOUT RED MCCOMBS – Red McCombs, a native Texan entrepreneur, is the co-founder of Clear Channel Communications, the founder of Red McCombs Automotive Group, and a former owner of several professional sports teams including the Minnesota Vikings, San Antonio Spurs and Denver Nuggets. Mr. McCombs is the namesake of the McCombs School of Business at the University of Texas and is a long-standing member of the Forbes 400 list of the wealthiest Americans. For more information on Mr. McCombs’ companies, visit www.mccombspartners.com.

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